Clayton Triick

Functions as a College/University

In their equity portfolios, YieldQuest invests in closed-end mutual funds that meet several specific criteria. The most important overlay in their approach to closed-end fund investing is the discount level at which the fund's price trades relative to its NAV. The firm targets funds that trade at historically wide discounts to their NAV. The second overlay to their closed-end fund strategy is to break down the individual holdings within the closed end fund. Depending upon market conditions, they look to overweight attractively priced funds within our secular market outlook. The same overlay is applied to market capitalization segments where they overweight and underweight specific segments of the market through the use of closed-end funds. The final overlay to YieldQuest's closed-end fund strategy analyzes the valuations of specific funds. By investigating and breaking down the individual holdings within a fund and calculating valuation metrics, they determine which funds are trading at a relative discount to historical valuation metrics. The firm overweights specific funds based on valuation metrics such as p/e and price-to-sales. In addition to closed-end funds, YieldQuest also incorporates ETFs into the equity allocation. The firm uses ETFs as a replacement for closed-end funds as closed-end discounts close to narrow levels or towards a premium to net-asset value. Additionally, they use a proprietary model that tracks the relative price-to-earnings ratios for the nine major sectors within the S&P 500. They will also incorporate global ETFs into the portfolio to achieve the necessary global diversification. YieldQuest also includes individual securities within an equity portfolio to achieve necessary diversification as well as create the appropriate overweight allocation for the portfolio. In individual bond portfolios, the firm generally ladders bonds from two to 10 years. As the bonds mature, YieldQuest will reinvest the proceeds into new bonds at the next rung of the ladder. They may extend maturities slightly to 12 or 13 years if interest rates are high. They generally do not invest in bonds with maturities longer than 12 or 13 years.

Angel Oak employs a value-driven approach that seeks to deliver attractive risk-adjusted returns by employing a credit-driven approach that identifies undervalued assets predominately within the fixed income sector focusing mainly on structured-credit fixed income markets. Investment strategies employ a top-down approach focused on identifying valuation dislocations in the structured and corporate credit markets and a bottom-up security selection process. Portfolio managers invest opportunistically up and down the capital structure based on relative value.

Acts as Closed-End Investment Fund/Investment Trust